I have a client that is a 50% stockholder in a ford dealership. His 1st cousin owns the other 50%. They bicker constantly because my client wants to update, computerize and give his employees more benefits. Other owner has taken to locking up the checkbook, taking it home with him to keep my client from writing checks. Several months ago my client goes to book writes a counter check on dealership account and bank president comes out and refuses to cash says other owner forbids it.
In 2001 before this man was my client he had a brokerage account with merrill lynch. My cient gave them carte blanche to handle account. My client had some Trustmark bank stock that he had inherited at his parents death in a plane crash. Broker made some bad decisions then took it upon himself to sell my clients bank stock (very low basis even with stepup) for a very high price resulting in a $61,000 liability that my client could not pay. This rocks along for a number of years and he becomes my client and last year I spoke with him about an offer in compromise and we offered $50000. We went to other owner and he cut a check for $50,000 and I once again explained to my client in other owners presence that he must start paying estimates and continue to pay estimates that if he gets delinquent with the time frame all will come back to haunt him. My client again said
that he understood. Other owner said the did not give a g-d but the federal government would not be telling him when to pay. I explained that unless he cut the checks for the estimates the offer in compromise would be dead in the water. Needless to say he did not pay them (threw a ranting raving cursing temper tantrum instead.) Did by accident discover that the other owner who uses someone else paid his estimates for the first time ever. Sent estimates and again he refuse to pay!
This is an s corp my clients k-1 was for $150,000 in total. Dealership established in 1934, still original building, some new equipment a lot of old obsolete inventory. The salary for each of the owners is $48,980. a year and no benefits. The other owner is just ignorant. They distribute none of the earnings except to pay balance on each tax return on April 14-15th. Stock and accumulated adjustments account is right at 1 million. Only have $300,000 in cd (one bank) earning less than 3.5% and keep $349,000 more or less in checking account.
I leave this morning for a much deserved vacation and my client calls and says he is in mell of a hess that his home had a 5year mortgage and mortgage is now due and there is a lien for the amount due IRS. Bank is forbidden from renewing mortgage due to lien. My client does not have the money to pay almost 78000 bucks more or less nor is another offer in compromise possible as other owner will not cut checks for the estimates. I have explained until I am blue in the face that he has to pay the taxes anyway and that with the penalty they pay for not filing estimates he is in essence losing money. I am back in my office but do not know what I can do to help.
Any ideas!!!!!!!!
In 2001 before this man was my client he had a brokerage account with merrill lynch. My cient gave them carte blanche to handle account. My client had some Trustmark bank stock that he had inherited at his parents death in a plane crash. Broker made some bad decisions then took it upon himself to sell my clients bank stock (very low basis even with stepup) for a very high price resulting in a $61,000 liability that my client could not pay. This rocks along for a number of years and he becomes my client and last year I spoke with him about an offer in compromise and we offered $50000. We went to other owner and he cut a check for $50,000 and I once again explained to my client in other owners presence that he must start paying estimates and continue to pay estimates that if he gets delinquent with the time frame all will come back to haunt him. My client again said
that he understood. Other owner said the did not give a g-d but the federal government would not be telling him when to pay. I explained that unless he cut the checks for the estimates the offer in compromise would be dead in the water. Needless to say he did not pay them (threw a ranting raving cursing temper tantrum instead.) Did by accident discover that the other owner who uses someone else paid his estimates for the first time ever. Sent estimates and again he refuse to pay!
This is an s corp my clients k-1 was for $150,000 in total. Dealership established in 1934, still original building, some new equipment a lot of old obsolete inventory. The salary for each of the owners is $48,980. a year and no benefits. The other owner is just ignorant. They distribute none of the earnings except to pay balance on each tax return on April 14-15th. Stock and accumulated adjustments account is right at 1 million. Only have $300,000 in cd (one bank) earning less than 3.5% and keep $349,000 more or less in checking account.
I leave this morning for a much deserved vacation and my client calls and says he is in mell of a hess that his home had a 5year mortgage and mortgage is now due and there is a lien for the amount due IRS. Bank is forbidden from renewing mortgage due to lien. My client does not have the money to pay almost 78000 bucks more or less nor is another offer in compromise possible as other owner will not cut checks for the estimates. I have explained until I am blue in the face that he has to pay the taxes anyway and that with the penalty they pay for not filing estimates he is in essence losing money. I am back in my office but do not know what I can do to help.
Any ideas!!!!!!!!
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